A Mortgage Company’s Guide to Your LO Licensing Test

Meeting the requirements for becoming a loan officer (LO) for a mortgage company in Kansas City can be difficult. The largest hurdles are typically the National and State tests that must be completed and passed in order to originate loans. While these tests may seem brutal, keep in mind that they safeguard consumers by requiring the loan officer to have a baseline of knowledge about their industry and its practices. Consider the following useful tips to help you prepare yourself for the Nationwide Mortgage Licensing System (NMLS) exam.

Take a Live Class

While many classes are offered online, taking a class in person can greatly increase your chances of passing your test. Being a loan officer at a mortgage company in Kansas City requires dedication and concentration. If you choose to take an online class or webinar, you can be more likely to give in to distractions such as phone calls or visitors while you are working.

On the other hand, in-person classes require you to focus within a room of your peers. Take a live course with a skilled knowledgeable instructor and then schedule your exam. Make sure to allocate plenty of time for studying, but schedule your test soon enough after your class ends to remember what you learned.

Study, Study, Study

Whether you have worked in the mortgage industry for 2 months or for 20 years, you will need to study in order to pass the NMLS exam. The test will cover more than your previous experience at a mortgage company in Kansas City. Although you may be a seasoned mortgage professional, regulations and rules can change. Therefore, it’s important to look at the most recent, relevant information and take your studying seriously. Some good tools include:

What’s on the Test?

The NMLS test questions will cover of the following:

Mortgage origination activities (25%)

General mortgage knowledge (25%)

Federal mortgage-related laws (35%)

Ethics (15%)

In addition to this information, it’s critical for you to know the regulations governing mortgages and the article that it’s associated with each one. For example, RESPA is regulation X and the Truth in Lending Act or TILA is regulation Z. Review your regulations and make sure you are able to connect them with the appropriate letter.

If at First You Don’t Succeed…

Many people take the NMLS (Nationwide Mortgage Licensing System) test and do not pass on their initial attempt. Don’t be discouraged if you fail on your first try. Study and try again!

The information provided on these posts have been prepared by a third party company and have been distributed for education purposes only. The positions, strategies or opinions of the authors do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax adviser for full eligibility requirements on tax deduction.